Yen is growing extremely fast. Overview for 09.11.2021

The Japanese yen is growing noticeably against the US dollar. The current quotation is 112.80.

It does not seem that the yen is growing thanks to the comments of monetary politicians or some statistics. The reason should be the market demand for safe-haven assets: investors are looking for a global foothold. On the whole, the market is now against the American dollar as long as it has got all the facts from the Fed and all the macrostatistics.

Anyway, macroeconomic reports give an idea of what is going on in the economy. We are most interested in inflation and everything around it. As soon as a miracle happens, and Japan finally conquers deflation, the Central Bank will start doing something with the public debt and stimulation programs. It will be interesting.

According to the statistics published today, average hourly wage in Japan in September grew by 0.2% y/y. This is inferior to the forecast (+0.6% y/y) and to the result from back in August. Companies fight less over workforce because have little trust in the financial future. This might be a problem.

The Japan Economy Watchers index in October grew to 55.5 points against 42.1 points in September and the forecasts 48.6 points. This is a good signal because might mean future interest in spending, and this is just what is needed.